What is a rent ceiling and what are its effects if it is set above the equilibrium rent?
What will be an ideal response?
A rent ceiling is a specific example of a price ceiling. A rent ceiling is a government imposed regulation that makes it illegal to charge a rent higher than a specified level. If a rent ceiling is set above the equilibrium rent, it has no effect because it does not make the equilibrium rent illegal.
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The table above gives four production possibilities for airplanes and cruise ships. In possibility A, how many resources are devoted to the production of airplanes?
A) 0 B) few C) most D) all E) It is impossible to tell without more information about the prices of airplanes and cruise ships.
There are two can companies, American and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above
If National is able to cheat on the agreement but American complies with the agreement, what amount of economic profit is made by National? A) $2,000 B) $3,000 C) $4,000 D) $6,000
An increase in productivity in a country will cause its currency to ________ because it can produce goods at a ________ price, everything else held constant
A) depreciate; lower B) appreciate; lower C) depreciate; higher D) appreciate; higher
Refer to the table below. If the cost per unit of advertising is constant at $600, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the egg industry is made up of only the three farms above; Happy Chickens, Special Chickens, and Superior Chickens.
A) 4
B) 2
C) 1
D) 3